South Korea is preparing to lift its de facto ban on Bitcoin and cryptocurrency sales for institutional investors. The country’s financial regulator, the FSC, announced that certain institutions will be allowed to sell specific crypto assets in response to growing demand.
Under the new regulations, starting from the second quarter of 2025, universities and charitable organizations will be permitted to sell cryptocurrency assets received as donations. Additionally, local crypto exchanges will be allowed to convert the crypto assets they receive as transaction fees into cash to cover operational costs.
Authorities have emphasized that a "Sales Guide" will be introduced to prevent potential risks associated with large-scale sales and that the implementation will proceed gradually. While current laws only permit individuals with verified identities to trade crypto, the surge in institutional interest has prompted this regulatory shift.
Later this year, pilot tests will be launched to enable over 3,500 publicly traded companies and professional investors to open accounts for investment purposes. Law enforcement agencies will also be granted access to open accounts to liquidate confiscated crypto assets from illegal activities.
South Korea enacted its first comprehensive crypto regulation last year. Now, with this new move allowing institutional participation, the country aims to broaden its digital asset ecosystem significantly.
